Summary
- PulteGroup (PHM, Financial) delivered strong first-quarter results with a notable gross margin and strategic price adjustments.
- Analyst price targets suggest a substantial potential upside for PulteGroup Inc, forecasting significant growth.
- The GF Value estimation indicates a potential downside, offering a prudent perspective on fair value.
PulteGroup's Robust Q1 2025 Performance
PulteGroup (PHM) showcased solid performance in the first quarter of 2025, delivering over 6,500 homes. The company achieved an impressive 27.5% gross margin, resulting in a net income of $523 million. While there was a slight 2% year-over-year revenue decline attributed to fewer closings, PulteGroup's strategic adaptability was evident as they increased net new orders by 26% sequentially. The company’s adjustments in pricing strategies and share repurchases underscore their flexible approach to changing market dynamics.
Wall Street Analysts' Optimistic Forecast
Analysts maintain a positive outlook for PulteGroup Inc (PHM, Financial). Based on price targets from 14 analysts, the average target price stands at $125.65. This reflects a high estimate of $161.00 and a low of $100.00, suggesting a promising upside of 25.21% from the current price of $100.36. For detailed estimates and further insights, visit the PulteGroup Inc (PHM) Forecast page.
The consensus among 18 brokerage firms positions PulteGroup Inc's (PHM, Financial) average brokerage recommendation at 2.2, corresponding to an "Outperform" status. This rating, which ranges from 1 (Strong Buy) to 5 (Sell), highlights the favorable analyst sentiment towards PHM.
Understanding PulteGroup's GF Value
According to GuruFocus estimates, the GF Value for PulteGroup Inc (PHM, Financial) is projected at $92.78 in one year. This suggests a potential downside of 7.55% from the current price of $100.3572. The GF Value is a calculated fair value estimate, considering historical trading multiples, past business growth, and future performance forecasts. For a deeper understanding, explore more detailed data on the PulteGroup Inc (PHM) Summary page.
